BioCentury
ARTICLE | Company News

Lundbeck neurology news

August 24, 2015 7:00 AM UTC

Lundbeck will reduce headcount by about 1,000 (17%) to about 4,801 to cut costs and regain profitability. The restructuring is Lundbeck’s first major move since Kare Schultz took the helm as president and CEO in May. The company plans to reorganize headquarter functions and European commercial operations. Lundbeck expects the restructuring to cut costs by DKK3 billion ($445.2 million) by 2017. Lundbeck also raised its 2015 revenue guidance to DKK14 billion ($2.1 billion) from DKK 13.2-DKK 13.7 billion ($2 billion). The company expects to see positive operating profit by 2016.

In 2Q15, Lundbeck reported revenues of DKK3.6 billion ($534.2 million), up 13% from 2Q14. However, the company posted a net loss of DKK3.9 billion ($579.7 million), a steep drop from its net profit of DKK144 million ($21.4 million) in 2Q14. Lundbeck said its costs increased 167% in 2Q15 compared to 2Q14, primarily due to the reclassification of certain costs as sales, distribution and R&D costs rather than administrative expenses. ...